Finance Globe

U.S. financial and economic topics from several finance writers.
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Is Your Mortgage Broker Trying to Scam You?

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As you search for your dream home, you’ll soon find yourself facing a variety of important questions. While most your attention is focused on finding the right property, it won’t be long before you begin your search for the perfect mortgage.

Many people turn to the service of a mortgage broker, as doing so is one of the best ways to secure a competitive rate from a reputable lender. Unfortunately, this process is easier said than done, as some brokers don’t have your best interests in mind.

Here are several signs that your mortgage broker is trying to scam you:

•    Low upfront rate quote: Known commonly as bait and switch, your broker attracts you with a lower than expected rate quote. Since you’re looking for the best deal, it’s only natural to learn more. As the process moves forward, your broker begins to change the numbers on you, which results in a loan that doesn’t exactly suit your needs.
•    Hidden fees: During your first contact, ask the broker for a list of fees associated with the transaction. In addition to any fees they charge – which you shouldn’t be responsible for paying – talk about any others associated with your loan. Dishonest brokers often attempt to add fees after your mortgage is locked in.
•    Willingness to alter numbers to obtain an approval: It’s hard to believe, but some lenders are willing to alter numbers with the idea of securing the perfect loan for you. It’s tempting to go along with this, especially if you’ve had trouble securing a loan, but it’s a big mistake that could cost you in the long run.

There are plenty of reputable mortgage brokers who are devoted to providing clients with high quality, professional service from start to finish.

During your search, touch base with three to five brokers to ask questions and better understand their approach. This will go a long way in leading you toward the right person.

Do you have experience working with a mortgage broker? How did you find someone you could trust?

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Comments 1

Frank on Sunday, 28 April 2019 19:34

I tried to use one when we bought our first home, but had a terrible experience. Not worth it and I would not recommend it.

I tried to use one when we bought our first home, but had a terrible experience. Not worth it and I would not recommend it.
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Friday, 23 August 2019

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